Gold gains momentum to start the week
(USAGOLD – February 25, 2019) – Gold steadied in overnight trading then gained enough momentum at the New York open to push back over the $1330 mark – up $4 at $1331.50. Silver is up 6¢ at $15.96. The White House decision to hold off on additional tariffs is probably the principal influence in gold’s pricing this morning (The Shanghai Composite Index closed up 5.6%), but underlying that is the solid technical picture that has unfolded over the past several months. All in all, we are off to a relatively quiet start for the week with little in the way of news other than the China trade developments. We will update later if anything of interest develops.
Quote of the Day
“This flagrant abuse of property rights and the rule of law sent the economy into a deep dive. From 2000 to 2008, real G.D.P. per capita contracted on average by 8.29% per year. During this period, Zimbabwe ran large fiscal deficits financed by printing money and experienced the second most severe case of hyperinflation in history. On November 14, 2008, the annual inflation rate peaked at 89.7 sextillion percent every day, making Zimbabwe’s 100 trillion dollar notes worthless. In the end, the government was forced to scrap the Zimbabwean dollar, because Zimbabweans simply refused to use it.” – Steven Hanke, Zimbabwe’s Monetary Death Spiral, 1-1-2019
Chart[s] of the Day
The price of gold in four of the world’s most troubled currencies